Department of Trade and Industry National Cacao Industry Cluster
• Inclusive Growth: 90 % are small farm holdings, more jobs and Livelihood opportunities, promotes countryside development; • Poverty Alleviation: Harvest every 2 weeks, suitable for intercropping; income augmentation; • Market Driven; Domestic and global supply shortfall. No product substitutes for cacao; • Good for Rehab Program: 18 months gestation period; • Year Round Production: Harvest every 2 weeks; High Peak: OctDec, Med Peak: May-July, Low Peak: Jan-April; and • Presence of Support Program from Gov’t. i.e., DENR-NGP, PCA’s Kaanib, DA-HVCC, DOST, DAR , DTI, LBP .
1 Million Ton Shortfall by 2020 5.0
Metric Tonne, Millions
4.75 4.5 4.25 4.0 3.75 3.5 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Year
CAR 0%
2012 CACAO PRODUCTION ILOCOS REGION 1%
ARMM 2%
CAGAYAN VALLEY 1%
CENTRAL LUZON 1%
CALABARZON 0%
MIMAROPA 1% BICOL REGION 1%
CARAGA 1%
WESTERN VISAYAS 1%
SOCCSKSARGEN 2%
CENTRAL VISAYAS 1% NORTHERN MINDANAO 5%
DAVAO REGION 78%
ZAMBOANGA PENINSULA 2% EASTERN VISAYAS 2%
2013-2020 National Cacao Industry Plan
Products 1. Fermented Beans 2. Processed cacao
Cacao Value Chain Map Export Market
EXPORTING
PROCESSING
Exporters # Traders / Exporters #
NURSERY OPERATION INPUT SUPPLIERS
Farmers Coops With Nursery #
INDUSTRY ENABLERS
Processors # Local traders #
TRADING
CACAO PRODUCTION
Institutional Users
Whoelsale /Retail
Farmers (non coop)
Industry Assn Chamber NGOs
Farmers Marketing Coops #
#
Nursery Operators # Input suppliers #
PAGRO LGU/MAO DA BPI DAR PCA DTI DOST DENR DOLE TESDA ACADEME GFI/FI
2020 Cacao Challenge: 100,000 MT • 2020 Global Consumption : 5.0M MT • Project Production Shortfall : 1.0M MT • Areas to be developed : 130,000 - 150,000 hectares • Annual Projected Expansion : 15,000 - 17,000 Ha/year
Achieve thru: 1. Increase in productivity level 2. Expand production areas or both
Opportunities CONSOLIDATING EXPORTING
- The domestic market is vastly undersupplied; - Impending global supply shortfall, demand on upward trend; - Under utilized capacity, presence of support facilities;
PROCESSING
- Increase demand for cacao processed products, i.e chocolate - Availability of support services;
TRADING
- Presence of consolidators/exporters - Entry of new players, encourage competition & pushes prices;
CACAO PRODUCTION
- Premium price for fermented and certified cacao - Large coconut and banana areas for inter cropping; - Availability of gov’t support programs
NURSERY OPERATION
- Extensive R&D on varietal improvement - Good germplasm
INPUT SUPPLIERS
- Availability of input suppliers
Constraints CONSOLIDATING EXPORTING
- High transport cost
PROCESSING
- Beans production still limited - limited value adding activities - Weak linkage between producers and processors
TRADING
- Low level of consciousness on product quality & standards
CACAO PRODUCTION
- Inadequate fermentation facilities - inadequate skills on cacao fermentation/drying - Low farm productivity level, Low level of skills on GAP - Inadequate post harvest facilities and basic infras
NURSERY OPERATION INPUT SUPPLIERS
- Inadequate supply of good quality seedling materials - Limited access to high yielding scion/clone materials - Proliferation of non-accredited nurseries - High cost of farm inputs
To produce 100,000 MT of fermented beans by year 2020 for the export and domestic markets through a 40% annual increase in production through;
Industry Strengthening, Expansion Farm Productivity Improvement
and Promotion
Easy Access to Quality Seedling Materials Promotion of Value Adding Activities Trade
Promotion and Market Development Continual R&D and Product Innovation
P120,000.00 to P150,000.00 per hectare
National Programs/Activities/Projects (PAPs) Strategy 1. Industry Promotion, Strengthening and Expansion • • • • • • •
Organize National and Regional Cacao Industry Councils Prepare National and Regional Industry Road Maps Facilitate RDC recognition of Regional Cacao Industry Council Organize of National Cacao Summit Lobby/facilitate membership to ICCO/World Cocoa Foundation Conduct Techno and Investment Fora Establish industry Databank, i..e. investment Profiles, etc
Strategy 2. Strengthen market linkage and promotion • • • • • •
Quality standards & certification advocacy campaign Establishment of Geographic Indication (GI) for Davao Cacao Participation to National and International Fair/Exhibits Market linkages and referrals (local and foreign) Packaging and Labelling Consultancy Facilitate cooperative bulk-buying activities
National Programs/Activities/Projects (PAPs) Strategy 3. Easy Access to Quality Seedling Materials • • • • • •
Strengthen nursery accreditation, strict implementation Seedlings dispersal/Distribution R&D program on varietal improvement Production of quality planting material NSIC-approved cacao varieties Establish pro’l/municipal/community-based nurseries and budwood gardens Facilitate reforms on nursery accreditation protocol
Strategy 4. Continuous Research and Development • Conduct R&D on Microbial, Physical, and Chemical Analysis and Contaminants • Conduct Technology Demonstrations ( Management of Cacao Pod Borer, and Coconut-based Farming System, etc) • Conduct research on bean flavor/aroma • Conduct R&D on the improvement of cacao processing equipment • Establish Cacao R&D Centers • Coordinate R&D Program on Varietal Improvement/ Performance • Intensify research on Pest and Diseases Control
National Programs/Activities/Projects (PAPs) Strategy 5. Improve Farm Productivity & Capability Enhancement • • • • • • • •
Preparation and printing of posters and manual on Cacao GAP Training on Cacao Farm Rehabilitation and Good Agricultural Practices Training on Cacao Fermentation and drying (post harvest) Techno provision through SETUP, MPEX, and CAPE Provision of region-wide network of fermentation facility/dryers Support to FITS Centers, School on the Air, Farmers’ Field Schools, etc Cacao Industry Profiling, Mapping and Geo-Tagging Improve farm-to-market roads
Strategy 6. Promotion of more value-adding activities • • • • •
Conduct of techno transfer training on Cacao processing Conduct of institutional development and entrepreneurship seminars Establish network with local fabricators re: provision of SSF Promote waste utilization to organic fertilizer Conduct of skills trainings on Cacao Processing/Value-adding
• • • • • • • • • • • • •
Cost of wet beans/kg : P35-38.00 @ average 250 pieces/kg Cost of Ready to sow Seeds/kg: P200.00/kg Cost of Grafting: Labor and Budstick: P3.00 – P4.00 1 Fully grown Tree: 250 Budsticks Nursery: Budwood Garden Rqmt; 1,000 m2 : 2,500 m2 Ratio Potting medium: Garden Soil, Organic soil, Carbonized Rice Hull Polyethylene Bag Size: 6”x 10” Seedlings Production Cycle Time: 6 months (2 cycles per year) Nursery Infrastructure Cost: P70-100.00/square meter (estimate) Seedling Density: 35-40 seedlings per square meter 3 Cubic Meters of Potting Medium = 2,600-2,800 bags Cost of Grafted Seedlings: P20.00-P25.00 Production Cost: P12-15.00 /Seedling
• • • • • • • • • • • •
No of Trees/Hectare: Open Area: 1,100, Inter cropped 600 trees Planting Distance: Minimum 3x3 meters Target Productivity level: 2 kg/tree/year Cost per grafted seedling (Davao Price): P20.00-P25.00/seedling Gestation period: 18 months, 7- 10 pods; 5 Years, 80-100 pods 7 pods = 1 Kilo Fresh Bean; 20 pods = 1 kilo dried Beans (Pod Index) Percent recovery wet to dry: 33%, 1:3 Ratio; Fermentation Time: 5 days; Drying Time (solar): 5-6 days Labor for Farm Maintenance: 1:3 Harvesting Frequency: every 2 weeks High Peak: Oct-Dec, Med Peak: May-July, Low Peak: Jan-April Production Cost: P40-45.00/kg dried beans
• Tableya accounts for 4-5% of national consumption; • 3 kg wet beans to 1 kg dried beans: 33% recovery rate • 1.5 kg dried beans to 1 kg Tablea (65-70% conversion rate) • Cocoa butter is 50% to 57% by weight of cocoa beans; • Average weight of 1 serve Tableya (round): 10 grams • Price (Davao) : 1 kg Tableya Block: P550.00-600.00 (est) • 1 kg pack single Tableya,12 pcs :P100.00 • Production Cost : P250-300.00 per kilo
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